Have you had any challenges with a house appraising whether you're a buyer or seller? Did you walk away from the deal or were you able to close? Comment what you experienced below 👇👇👇
@dontfeedthepirates Ugh. That stinks. All the upfront work you put in and some money for inspections. If it appraised or they got a cash offer I’m sure they’d move. Why put it on the market to begin with, you know? Sorry it didn’t work out, but the right house will come to you when the time is right.
True story: Soon after the inspection parties learned that the very expensive house was 40,000.- LESS than the appraisal. Sellers wouldn’t budge! No one could understand it. They were going to make a ton of money. So just like you said, the buyer walked away and the sellers put their house back on the market. That was four years ago. I read the appraisal. Looked very professional to me. (I got an appraisers license years ago.). I was not mad, but everyone else was.
I think that the problem right now is that sellers just expect buyers to pay the appraisal gap because so many people are doing it. This is likely feasible if you already own a home and you can use the appreciation in the home that you’re selling, but this creates a really bad situation for first time homebuyers.
You’re absolutely right. It’s extremely frustrating for first time home buyers and trying to weigh so many decisions on top of the value concern. It’s been such a crazy time the past 2 years in real estate.
Many times the contract price is over market value, the rationale is to not leave any money on the table and let the appraisal be the deciding factor, then negotiations start there. This strategy makes the Appraiser seem like the 'Bad Guy" because they ''Cut' the value.....This is an old Realtor trick.
The house that we put an offer did not appraised. I am so lucky to have been backed up by Ribbon Program. RMV was $285.000 but VA appraised came low at $250.000. I am covered by Ribbon thats $35,000 appraisal gap. So glad my agent discussed with me the Ribbon Program. I lost 13 times on my offer but on the 14th property i put offered Yes, offer accepted due to the Ribbon Cash offer program ❤️
Hi I'm a buyer. the house I wanted it didn't appraise. The Seller wont negotiate because they believe their house is more than the appraise. They asking us to look for another appraiser from a different lender. My question is Can I look for another appraiser from a different lender?
Thanks for watching! Are you buying in New Jersey? If so, you should have an attorney involved to try to negotiate this. Have you spoken to your lender about options of getting it reappraised? Everyone should want this to close since you’re far into the process so the lender may pay for another appraisal with another appraiser. Or maybe the seller is willing to cover part of the cost. The issue is that if this deal dies and they take another deal with a loan, the buyer’s lender may appraise at a similar amount. Has your agent provided comps to help justify the appraisal?
please one question as a seller VA appraiser came in love almost $70k lower of asking price .. how many day do i have to respond back after i receive the appraisal report (that i dont want to continue to sell the house ) and is the contract still on ?
Thanks for watching! Banks just schedule an appraiser, but the apprasier needs to remain independent from the bank being used by the buyer. It's the appraiser who uses market data and comparables and uses a couple of different approaches to come up with the appraised value. There are some places here in NJ where the data of what's selling isn't comparable to appraised values (over-inflated prices), so seeing some push back on appraised values happening.
*NJ in the house!!! Our latest prospective house appraised over $30k under and we are in the process of negotiating it hopefully under list price since it is not worth the value sad to say.*
Thanks for watching! Is the seller willing to come to the appraised value or is he looking to you to contribute? These inflated prices have created such challenges with appraisals.
Hi Ruby! Thanks for watching. If you're paying cash, there's no requirement for an appraisal. Lenders require almost most of the time (depending on the market and systems they use to ensure fair market value of a home/address) an appraisal. Cash is king and isn't required. You could always get one if you wanted to on your own.
We are dealing with this right now. Our closing should be next week, but it appraised for about 20k under asking/offer price. We are having it reappraised & praying it comes up & seller will come down. Otherwise we lose $5k due diligence plus $1k earnest plus the few thousand in inspections, appraisal $. Ugh we are so 😩
Thanks for watching! You would hope that since you’re so far down the path to closing that the seller would compromise and accommodate some. If they decide to not move forward, the same thing could happen with another buyer for them. Instead of the time and aggravation, you’d hope for some middle ground. Good luck…hope it all works out for you!
@@LivinginNorthernNJ thank you, that’s what we are hoping for since they are trying to close on their new home too. Problem is, here in NC, we offered & paid $5k (due diligence/take it off market fee) to seller & if we don’t buy the home, the seller gets to keep that $5k. If we do buy home, that $ goes towards home. So they could choose to not lower price & make $5k off of us!
@@LivinginNorthernNJ our lender is AWFUL & got appraiser from same appraisal company, so they won’t budge, so we aren’t getting house. We are out so much money now & can’t even house hunt until we can save that money back up over next 8+ months. So over this whole thing.
@@LivinginNorthernNJ still a long shot, but lender getting new appraisal done to see if it changes, if not it’s up to seller to come down & I just don’t know if he would come down at all, much less low enough.
I’m a buyer. We were trying to buy a house and the appraisal came back 30000 less! The seller was not happy and wouldn’t budge. No other property sold for that price but the seller didn’t care. It’s been extremely frustrating.
Thanks for watching! It’s extremely frustrating. You’d hope a seller would at the very least meet you half way. It’s not your fault the house didn’t appraise, so they shouldn’t be surprised in this market. If they decide to kill the deal, the same thing will most likely happen on the next deal with an under appraisal. I have a seller, who’s also a buyer, and the house she’s under contract for appraised 90k below offer price. The seller of the house she’s buying is not budging either. We got a good over ask offer for the house she’s selling, which will make up the difference, but still frustrating to say the least.
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Have you had any challenges with a house appraising whether you're a buyer or seller? Did you walk away from the deal or were you able to close? Comment what you experienced below 👇👇👇
First time buyer here. My appraisal came back 102k under. Contract price is 349,900 this is insane.
Oh my gosh! That’s a huge gap. Were you able to come to resolution yet?
@@LivinginNorthernNJ I will let you know what happens.
@dontfeedthepirates good luck!!
@@LivinginNorthernNJ The deal fell through they’ve been there since the 90s a lot of sentimental value, they won’t move.
@dontfeedthepirates Ugh. That stinks. All the upfront work you put in and some money for inspections. If it appraised or they got a cash offer I’m sure they’d move. Why put it on the market to begin with, you know? Sorry it didn’t work out, but the right house will come to you when the time is right.
True story: Soon after the inspection parties learned that the very expensive house was 40,000.- LESS than the appraisal. Sellers wouldn’t budge! No one could understand it. They were going to make a ton of money. So just like you said, the buyer walked away and the sellers put their house back on the market. That was four years ago. I read the appraisal. Looked very professional to me. (I got an appraisers license years ago.). I was not mad, but everyone else was.
It could appraise at seller ask because all appraisals are different
How long does it take to know after the appraisal? What it appraises for ?? Same day ?? Or ??
Usually you’ll get something in a couple of days. The appraiser puts a report together with market data to justify their appraisal findings
I think that the problem right now is that sellers just expect buyers to pay the appraisal gap because so many people are doing it. This is likely feasible if you already own a home and you can use the appreciation in the home that you’re selling, but this creates a really bad situation for first time homebuyers.
You’re absolutely right. It’s extremely frustrating for first time home buyers and trying to weigh so many decisions on top of the value concern. It’s been such a crazy time the past 2 years in real estate.
Many times the contract price is over market value, the rationale is to not leave any money on the table and let the appraisal be the deciding factor, then negotiations start there. This strategy makes the Appraiser seem like the 'Bad Guy" because they ''Cut' the value.....This is an old Realtor trick.
Great video!!! Very well said. 👏
So wtf if it comes back 100k under accepted offer? This all because of appraisals incompetence
The house that we put an offer did not appraised. I am so lucky to have been backed up by Ribbon Program. RMV was $285.000 but VA appraised came low at $250.000. I am covered by Ribbon thats $35,000 appraisal gap. So glad my agent discussed with me the Ribbon Program. I lost 13 times on my offer but on the 14th property i put offered Yes, offer accepted due to the Ribbon Cash offer program ❤️
Another great one Bob! Super helpful as always!
Appreciate you watching!
Hi I'm a buyer. the house I wanted it didn't appraise. The Seller wont negotiate because they believe their house is more than the appraise. They asking us to look for another appraiser from a different lender. My question is Can I look for another appraiser from a different lender?
Thanks for watching! Are you buying in New Jersey? If so, you should have an attorney involved to try to negotiate this. Have you spoken to your lender about options of getting it reappraised? Everyone should want this to close since you’re far into the process so the lender may pay for another appraisal with another appraiser. Or maybe the seller is willing to cover part of the cost. The issue is that if this deal dies and they take another deal with a loan, the buyer’s lender may appraise at a similar amount. Has your agent provided comps to help justify the appraisal?
please one question as a seller VA appraiser came in love almost $70k lower of asking price .. how many day do i have to respond back after i receive the appraisal report (that i dont want to continue to sell the house ) and is the contract still on ?
During this strong sellers market, are banks being less conservative in their appraisals, or does it vary per bank?
Thanks for watching! Banks just schedule an appraiser, but the apprasier needs to remain independent from the bank being used by the buyer. It's the appraiser who uses market data and comparables and uses a couple of different approaches to come up with the appraised value. There are some places here in NJ where the data of what's selling isn't comparable to appraised values (over-inflated prices), so seeing some push back on appraised values happening.
*NJ in the house!!! Our latest prospective house appraised over $30k under and we are in the process of negotiating it hopefully under list price since it is not worth the value sad to say.*
Thanks for watching! Is the seller willing to come to the appraised value or is he looking to you to contribute? These inflated prices have created such challenges with appraisals.
@Jesus Christ Is King Only especially for those seller who have not paid off the house over the 30 years
How did it work out for you?
How did it work out
Thank you for your help
Thanks for watching!
What about cash buyers? Do they get an appraisal? Homes are being snatched up like musical chairs when the music stops. Multiple over asking bids.
Hi Ruby! Thanks for watching. If you're paying cash, there's no requirement for an appraisal. Lenders require almost most of the time (depending on the market and systems they use to ensure fair market value of a home/address) an appraisal. Cash is king and isn't required. You could always get one if you wanted to on your own.
We are dealing with this right now. Our closing should be next week, but it appraised for about 20k under asking/offer price. We are having it reappraised & praying it comes up & seller will come down. Otherwise we lose $5k due diligence plus $1k earnest plus the few thousand in inspections, appraisal $. Ugh we are so 😩
Thanks for watching! You would hope that since you’re so far down the path to closing that the seller would compromise and accommodate some. If they decide to not move forward, the same thing could happen with another buyer for them. Instead of the time and aggravation, you’d hope for some middle ground. Good luck…hope it all works out for you!
@@LivinginNorthernNJ thank you, that’s what we are hoping for since they are trying to close on their new home too. Problem is, here in NC, we offered & paid $5k (due diligence/take it off market fee) to seller & if we don’t buy the home, the seller gets to keep that $5k. If we do buy home, that $ goes towards home. So they could choose to not lower price & make $5k off of us!
@@LivinginNorthernNJ our lender is AWFUL & got appraiser from same appraisal company, so they won’t budge, so we aren’t getting house. We are out so much money now & can’t even house hunt until we can save that money back up over next 8+ months. So over this whole thing.
@@crazylicious85 omg that’s terrible! I’m so sorry. All that money wasted.
@@LivinginNorthernNJ still a long shot, but lender getting new appraisal done to see if it changes, if not it’s up to seller to come down & I just don’t know if he would come down at all, much less low enough.
I’m a buyer. We were trying to buy a house and the appraisal came back 30000 less! The seller was not happy and wouldn’t budge. No other property sold for that price but the seller didn’t care. It’s been extremely frustrating.
Thanks for watching! It’s extremely frustrating. You’d hope a seller would at the very least meet you half way. It’s not your fault the house didn’t appraise, so they shouldn’t be surprised in this market. If they decide to kill the deal, the same thing will most likely happen on the next deal with an under appraisal. I have a seller, who’s also a buyer, and the house she’s under contract for appraised 90k below offer price. The seller of the house she’s buying is not budging either. We got a good over ask offer for the house she’s selling, which will make up the difference, but still frustrating to say the least.